Target CEO Brian Cornell to Step Down, Fiddelke to Take Over

Target CEO Brian Cornell to step down in February, replaced by COO Michael Fiddelke. Cornell's departure is not a surprise, with his contract nearly up and the company's performance down. Fiddelke is a company insider and will focus on existing initiatives to boost same-store traffic and identify cost savings. Investors may want to hold off on buying shares as Wall Street is not convinced by this decision.

Target Corporation shares tumbled 11% in opening trade on July 2, 2025, after the company announced that its board has elected Chief Operating Officer Michael Fiddelke to succeed Brian Cornell as Chief Executive Officer, effective February 1, 2026. The leadership shift comes amid weak sales, customer churn, and operational challenges [1].

Cornell's decision to step down is not unexpected, as his contract is nearing expiration and the company has been facing performance issues. Fiddelke, who has been with Target for 20 years and has held various leadership roles, will focus on existing initiatives to boost same-store traffic and identify cost savings. He has overseen efforts that enabled exponential growth across the business, including investments to build and scale the company's stores, supply chain, digital capabilities, and team [1].

The appointment of Fiddelke comes as a surprise to Wall Street, with investors expressing skepticism about the decision. The sell-off was accompanied by sharp volume, with over 40 lakh shares changing hands. The company's stock hit a low of $94.15 during the trading session, reflecting investor concerns over the company's performance and the potential for further declines under Fiddelke's leadership [1].

US markets were trading mixed, with the Dow 30 up 80.75 points or 0.18% at 45,003 around 9:57 AM ET (8 pm IST), the S&P 500 down 9.12 points or 0.14% at 6,402.25, and the Nasdaq Composite down 102.76 points or 0.48% at 21,212.20 [1].

Fiddelke's appointment gives him unmatched enterprise insight and a base of strong team trust, but what sets him apart is his 'fresh eyes' mindset, challenging the status quo to evolve how the business operates, differentiates, and delivers long-term value. He has a clear commitment to driving growth and delivering better results, focusing on refocusing the company's strategy and building on its strengths to regain momentum [1].

Investors may want to hold off on buying shares as Wall Street is not convinced by this decision. The appointment of Fiddelke may not be enough to turn around Target's performance, and the company will need to demonstrate significant progress in the coming months to regain investor confidence.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/target-corporation-shares-plunge-11-after-ceo-brian-cornell-steps-down-michael-fiddelke-to-take-charge-from-feb-1-2026/articleshow/123412852.cms?from=mdr